Downward Channel has formed on Telkom.
The price continues to make lower highs and lower lows. We can only go with the trend as long as it continues.
So my bias is bearish as there are other momentum indicators confirming downside to come.
200>21>7
RSI<50
Target R15.00
ABOUT THE COMPANY
Telkom SA SOC Ltd. is a leading telecommunications company in South...
Inv Cup & Handle formed on Telkom.
We then had a break down and the market has been coming down ever since.
200>21 >7 - Bearish
RSI<50
The first target was at R28.63. But the market gapped and opened at R26.00.
This means the price got out at a better price for the short.
The bias is still bearish and we can expect further downside.
I'll let you know in due course.
Large H&S cine May 2022
This is one of those medium investment trades, that you need to hold for a LONG period of time.
Luckily with CFDs, when you short stocks you gain interest, so it doesn't matter how long you hold.
The longer the better.
Any way, the price broke below
200 >21> 7 - Bearish (Red)
RSI <50 Red
Target remains at R88.70
Inv Cup & Handle formed and broke below the brim level.
200>21 >7 - Bearish
RSI<50
Target R28.63
Bearish bias
We had a BOS up twice before, we had a Change of Character. This means, we go our trend reversal on the bigger time frame, showing downside to come.
This works with the INv Cup and Handle
and because the Daily Bias on the JSE is bearish all confirms...
JSE:TKG
Made big engulfing bar yesterday and made double bottom.
Could be nice setup as well for few days for traders that like trading against major trend.
Telkom has been in a strong uptrend but after a buying climax (BC) on high volume and automatic reaction (AR) we have set the bounds for a trading range (TR). As it develops further we will be able to see if it a re-accumulation or distribution.
Telkom has once again bumped up into its trend line resistance which has formed highs in the stock on two previous occasions. The stock has been a strong outperformer in its sector and one wonders whether it has not possibly run too hard in the context of a weak economic backdrop locally. What is interesting to note is that the top in 2015 formed in early April....
#Telkom might be running into some tough resistances after a long uptrend earlier this year.
- Retest of long term trend-line
- Bear flag forming
- Last but not least, .618 fib retracement level reached
All 3 these reasons are sitting at the same point.
Maybe a last effort or bull trap waiting, but I expect a drop
It is not a good time to buy Telkom but it makes a good study of the Wyckoff principles. The first thing to notice is the pattern: Markdown - Accumulation - Markup - Distribution - Markdown - Accumulation - Markup and now potentially forming a range again. The next notice the two ways that markups and markdowns en: 1) The first Markup and Markdown ended by an...
